Aaaaaaaaaah yes ...... you have me there. For the Reserve Bank Governor to express his concern that his children may have an affordability issue on house prices then you truly do have an eyebrow raising conundrum.
I would have thought we were already having an increase in savings and a lowering of debt at the moment. .
AUSTRALIA'S banks are flushed with more cash than they can lend as consumers pay debts and save.
The growth in savings is far outstripping loans growth with the Commonwealth Bank reporting household deposits growth of more than 12 per cent for the first six months of this financial year, compared with lending growth of just 4.3 per cent.
Business deposits were also growing strongly at 15.4 per cent, compared with business lending which contracted by 3.9 per cent.
The change of fortune means banks, which had relied on raising funds on the global market and blamed the high cost of doing so for interest rate increases above the official cash rate, may now be able to fund loans substantially from their own reserves.
Read more: http://www.news.com.au/money/money-...ks/story-e6frfmd9-1226046606894#ixzz1KrmK3mmO
Housing is very affordable in other parts.
"Very" affordable?
Not quite. Housing in other parts is certainly much cheaper, but wages are proportionally more stingy.
Price/earnings ratios are still many multiples above long term averages in these areas.
Yes, very affordable. Pre earthquake you could buy a very decent house in Chch for under $300k. On comparable wages to what we get in Aust...
Eh?
Wages are substantially lower in NZ than Oz, much to current consternation.
Hence large immigration flows to Oz.
No, my X has worked for the same company in Aust/NZ/Aust for 10 years and the wage package is pretty much the same in both countries. Main differences are that in NZ it is common to get PHI but very low Super. In Aust there is no PHI but much better Super.
There is also very little in the way of Govt family assistance in NZ and the cost of living (not inc. housing) is higher so combine those factors with the better lifestyle in Aust and that is why Kiwis flock over the Tasman.
Take our personal experience out of the picture if I use other known experiences then you can buy a decent house in Chch for 6 years wages $300k house, $50k wages. A comparable house in Aust (Melb) would cost $750k so 10 years of wages at $75k.
Of course there is no stamp duty in NZ so that is a bonus.
In so far as, along the chain of liquidity, there goes the US, there goes China, as we go?
What's in store for all of us when the pumping stops?
I don't believe this chart reflects the true state of US RE loans and is in fact much worse?
View attachment 42624
Front page of Theage.com.au today :
Home prices in biggest drop in 12 years
I liked this snippet:
"Basically there are more people putting their properties on the market than there are people buying them,” RP Data research director Tim Lawless told BusinessDay. “Until we start to see that effective supply being absorbed, I really don’t think we’ll see any upward price pressures.”
Interesting, since we have such a huge under-supply issue... as the REIV... RP-Data... Robots ect have told us
Read more: http://www.theage.com.au/business/h...in-12-years-20110429-1dzkb.html#ixzz1Ksj51Oys
LOL Apple and oranges
I don't think a $300k house in Chch compares with a $750k in Melb. LOL
I think I'll choose someone objective to debate with
He mentions a comparitive house in Melbourne costing $750k. So you'd assume he's talking about similar quality (size, location, etc). So they are in fact comparable. Just because something costs $300k in one place and $750k in another place doesn't mean that they are not of the same quality.
I would like to see that comparison.
$300k in Chch is below average, $750k in Melb is above average
LOL Apple and oranges
I don't think a $300k house in Chch compares with a $750k in Melb. LOL
I think I'll choose someone objective to debate with
I would like to see that comparison.
$300k in Chch is below average, $750k in Melb is above average
I have houses of comparable quality and size, similar distance to CBD in both cities.
Front page of Theage.com.au today :
Home prices in biggest drop in 12 years
I liked this snippet:
"Basically there are more people putting their properties on the market than there are people buying them,” RP Data research director Tim Lawless told BusinessDay. “Until we start to see that effective supply being absorbed, I really don’t think we’ll see any upward price pressures.”
Interesting, since we have such a huge under-supply issue... as the REIV... RP-Data... Robots ect have told us
Read more: http://www.theage.com.au/business/h...in-12-years-20110429-1dzkb.html#ixzz1Ksj51Oys
You said that people leave NZ to come to Aust as housing is unaffordable in NZ, this is not the case IME.
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